Churches say Reno man duped them in Haiti project

Apr. 18, 2011

Mike Stickler is director of Community Renewal, Inc. / Submitted

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what happened:

On Jan. 12, 2010, a devastating 7.0 magnitude earthquake struck Haiti, killing about 316,000 people, according to the Haitian government and causing up to $14 billion worth of damage.As one of the poorest and least developed nations in the world, Haiti has struggled to rebuild, and about 1.3 million people live in temporary settlements, according to U.S. government estimates.

Help build hope haiti Web site says it is planning to hold home building events at the following locations:University of Nevada, Reno Lawlor Events Center - May 21, 2011Houston, Texas - October 8, 2011San Antonio, Texas - October 22, 2011Las Vegas - November 19, 2011Dallas Metroplex - April 28, 2012 Builds for 2012 and BeyondSan Diego; Sacramento, Calif.; Orange County, Calif.; Portland, Ore.; Denver; Tampa, Fla.; Greensboro, North N.C.; Atlanta; Chicago; Nashville; PhoenixWeb site for the Haiti project: http://www.helpbuildhopehaiti.org/Web sites for Mike Stickler's other companiesThe Vision Group: http://www.thevisiongroupltd.com/Generous Life: http://www.helpbuildhopehaiti.org/GenerousLife/?page_id=2Web site for the group that trademarked the Help Build Hope Haiti name: http://www.crossroadsmissions.com

ABOUT

THIS REPORT: Following a tip, RGJ reporter Martha Bellisle examined the Haiti project and its organizer, Michael Stickler, through interviews with those involved, state officials and investigators. She searched court records and the Internet related to the project and Stickler's businesses. WHAT WE FOUND: Stickler and Help Build Hope Haiti continue to raise funds for the project, but many key workers have left claiming they are owed thousands; the Nevada and Texas churches that gave money dropped out after losing thousands; Stickler and his businesses owe more than $250,000 in taxes and civil judgments; and Stickler is being sued by some of the involved groups.

Stickler's response: Nothing spent outside of 'preapproved expenses'

RGJ reporter Martha Belisle sent project organizer Mike Stickler e-mails and left voice messages at his personal and business phones for three days telling him about the story and seeking comment, but Stickler refused to be interviewed by the Reno Gazette-Journal.Stickler's initial response said to contact Kristen Ivey, the CEO and spokesman for the Help Build Hope project. She was not immediately available and would not agree to a meeting.When a reporter and photographer went to his office Wednesday, an employee locked the door as they approached and walked into another room as they knocked on the glass door.Later that day, Stickler sent an email saying he travels "90 percent of the time" and was not available. He included in this email what he said was his written response to questions.Concerning a contract to have his non-profit Help Build Hope Haiti pay his for-profit company The Vision Group, LTD, $35,000 per month for consulting, he said:"To date, myself and The Vision Group, Ltd., have donated 100 percent of its efforts to the Help Build Hope Project and have not collected one penny from this project outside of pre-approved expenses. My efforts have been to see the over one million homeless find permanent homes and employment. My heart has and remains to be to serve the hopeless in the world - the Haitian People certainly qualify!"Concerning a federal tax lien against him, he said:"It is true I personally have been in a long time dispute with the IRS regarding taxes. We have come to an accord and have made arrangements to repay the settled amount of $54K. The lien will remain until the obligation is met. This should have no bearing on Help Build Hope Haiti, as it dates back well before the devastation from the earthquake of January 2010 or the inception of the project subsequent to the earthquake."The IRS said it cannot comment on specific cases.

LEGAL ACTION?To date, the Nevada Attorney General's office said they have not received complaints against the companies that would prompt an investigation. Two organizations, Narrow Gate Ministries in Colorado Springs, Colo., and the pastor of a church in of Paterson, New Jersey, wrote complaints at the Consumer Affairs Web site saying they had contracts with Faith Based Solutions and had paid them thousands, but did not receive what was promised.An agent with the Nevada office of the Federal Bureau of Investigations said he could not confirm or deny whether agents are looking at the project, Stickler, or any of his businesses.

LEGAL ACTION?

To date, the Nevada Attorney General's office said they have not received complaints against the companies that would prompt an investigation. Two organizations, Narrow Gate Ministries in Colorado Springs, Colo., and the pastor of a church in of Paterson, New Jersey, wrote complaints at the Consumer Affairs Web site saying they had contracts with Faith Based Solutions and had paid them thousands, but did not receive what was promised.An agent with the Nevada office of the Federal Bureau of Investigations said he could not confirm or deny whether agents are looking at the project, Stickler, or any of his businesses.

With a sincere desire to help the people of Haiti after the January 2010 earthquake that killed thousands of people, churches and individuals in Nevada and Texas banded together under an umbrella group that planned to build homes at sites in the U.S. and then ship them to the island nation.

But a year after the Reno-based Help Build Hope Haiti began gathering funds and workers for the effort, a Reno Gazette-Journal investigation found that the project has crumbled. Among the problems:

» Many of the lead workers left or were fired after claiming the leader of the organization, Michael Stickler, misused funds.

» The churches pulled out after the money they gave disappeared.

» The contact in Haiti in charge of securing land is threatening to file criminal charges if Stickler sets foot there because he has failed to pay workers.

» A building company and one church that contributed filed a lawsuit last week claiming Stickler is guilty of fraud and spent all the money.

Meanwhile, state and federal agencies are going after Stickler, who lives in Washoe Valley but works in Reno, for failing to pay taxes; several companies have sued him for not paying bills and employees; and he was arrested for contempt of court charges for not showing up for one civil lawsuit. Stickler also lost his Nevada driver's license because he bounced his check to the DMV, records show.

Paul Holland, pastor of the Cornerstone Foursquare Church in Sparks, said the collapse of the project was "a heartbreak."

"It's just sad. It's a terrible mess," said Holland, whose small church contributed $23,000 for the plan -- money he does not expect to be repaid. "He presented himself as a Christian man who followed Christian principles, but he just hasn't acted that way."

Stickler, who oversaw the Haiti project from the Reno offices of his two other organizations, a nonprofit called Community Renewal Inc. and a for-profit company The Vision Group LLC, declined numerous interview requests. He referred questions to Kristen Ivey, whom he said was the CEO and spokesman for Help Build Hope Haiti.

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Stickler did send an email saying that The Vision Group has donated its services --except for "pre-approved expenses" -- to the nonprofit Haiti project.

"My efforts have been to see the over one million homeless find permanent homes and employment," he said in the e-mail. "My heart has and remains to be to serve the hopeless in the world - the Haitian People certainly qualify!"

However, Stickler told the Texas contributors in February that Community Renewal, the umbrella group over the Haiti project, had a contract with The Vision Group for $35,000 per month for consulting.

And a lawsuit filed last week states that Stickler told the Texas group that Community Renewal had paid The Vision Group at least $35,750 between Jan. 1 and Feb. 21. Stickler also charged Community Renewal more than $21,000 in expenses in the first six weeks of 2011, the suit said.

A working copy of the Haiti project's budget showed that The Vision Group would receive $1.8 million for fundraising and marketing in 2011, the suit said.

"Him and his wife were in one company, and they were sending funds to his other company," said Pastor Rafe Wright, who was involved in the project with his church in Texas. "No matter what happened, he was going to make out well."

Despite the problems, Stickler's office sent a news release to the Reno Gazette-Journal last week saying it is moving forward with the project, and plans to "bring together thousands of residents," on May 21 in Reno to build roof and wall panels for 50 homes that will be sent to Haiti.

Bob Stanbery, a pastor at Midlothian Bible Church in Midlothian, Texas, who left his pastoral job to work on the Haiti project, said Stickler needs to be stopped.

"I don't know when it went south, but it went south bad, and he has trashed everyone, and he's still raising money," said Stanbery, who said Stickler owes him $7,000. "It's not helping the Haitian people, and I don't think it will when you've got a man like that at the head."

Project takes shape

Everyone agreed the project was a great idea: Use thousands of volunteers to build 5,000 houses, each 400-500 square feet, in church parking lots and other sites across the country that would later be disassembled and shipped to Haiti.

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Once there, Haitians would take part in the re-assembly of the houses, and would secure jobs at the "village communities" that would spring up around the new developments, according to a company press release.

Ric Drudi, a building contractor from St. Augustine, Fla., was hired last year as the "build director" to design the structures and plan the logistics, he said. A longtime friend of Sticker's, Drudi said he agreed to move to Reno to make the project happen.

"I developed a way to do what the project needed -- incorporating large groups of volunteers to build homes that could withstand earthquakes, rot, mold, that would be shipped to Haiti," Drudi said. "We came up with a significant design application at a reasonable cost."

Stickler was in charge of fundraising, Drudi said. And Stanbery, the former pastor in Texas, said he joined the project last December to help get churches and individuals involved.

In Haiti, a developer named Richard Jank said he offered the project access to his political connections there. He traveled to Reno for a meeting with Drudi and Stickler, and was named the exclusive contractor in Haiti, Jank said.

Jank said he went back to Haiti and promoted the project at town meetings and with government officials, secured several properties for the first 50 homes and then another 500 beyond that.

Meanwhile, organizers met with churches in Texas and Nevada. Three Reno churches joined and six groups in Texas committed to the project.

Some churches, including Cornerstone Foursquare Church in Sparks, contributed at the "full sponsorship" rate of $23,000. The South Reno Baptist Church gave a half-sponsorship, and Christ Fellowship Church in Texas gave a double sponsorship and collected donations from about 200 congregants.

Troubles emerge

Drudi, the build director, said problems with the organization became evident in January and have continued. Payroll checks began bouncing, he said, and a probe into the companies records revealed "tremendous inconsistencies."

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"Monies that had been loaned to the organization were labeled as contributions rather than loans," Drudi said. "Money the churches had given for the project was used for other purposes."

Sherry Macaluso, who worked as an events coordinator for the company in Reno, said Stickler took some staff to Irving, Texas, for a weeklong business trip in January. But while there, she said she was told that Stickler was having trouble covering their lodging. She said she later found that her credit card was charged $1,438 for her room. She protested, and the Marriott removed the charge, she said.

In addition, Macaluso, who has since left the company, said one of her payroll checks bounced in the fall, Stickler had trouble paying everyone in mid-February and he then failed to pay her on Feb. 20, she said. Macaluso filed a claim with the state labor commissioner on April 11 for $3,000 she said she is still owed.

Aware of the money troubles, Drudi said he raised his concerns with Stickler, but ended up also leaving.

"I contacted Mr. Stickler and told him I can't work for this organization knowing that these things are taking place," Drudi said. "I told him he should come clean. By doing so, we can save the project."

Despite attempts to resolve the problems, Drudi left the project on Feb. 15. Stickler told the Texas churches during a meeting in February that Drudi was "bipolar" and blamed him for some of the problems, according to several people who attended, including Stanbery and a building contractor named Tod Bush from Athens, Texas.

Since then, Drudi has moved back to Florida and filed a wage claim for $4,106 against Stickler with the Nevada Department of Business and Industry. On March 31, the commissioner granted the claim and added a $6,158 penalty. Another $5,000 fine was added because Stickler was "a repeat offender," bringing the total to $15,265.

That judgment is on top of five other labor claims against Stickler's companies, some in the $4,000 range.

"I'm not out for revenge," Drudi said. "But this man needs to be stopped. He has hurt a lot of people."

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"As people of faith, we are to be held to a higher standard," Drudi said. "This man is deranged, and his motive is selfish. His behaviors are based on his own selfish desires. He was extremely good at deceiving people."

Contractor burned

Stanbery was another worker on the project who left believing the churches and others were burned.

He was a pastor at the Midlothian Church of Christ, near Dallas, he said, and joined the building project in December. He resigned in February after a meeting Stickler had with the church groups that revealed the depth of the problems.

Stanbery said Stickler owes him $7,000, less $300 for a laptop computer he kept.

The churches had called the meeting after learning that a Kentucky group, CrossRoads Missions, had trademarked the Help Build Hope Haiti name and had filed a cease and desist order against Stickler.

Rob Minton, director of CrossRoads Missions, said they were forced to take legal action after Stickler refused to stop using their name.

Ivey, with Stickler's organization, confirmed that there was a dispute, but said it has been fixed.

"The parties have settled any disagreement that has occurred regarding the trademark issues," she said in an email. "If there are remaining issues outstanding, I am not aware of them."

Stanbery said the meeting also revealed that Stickler had set up a contract to have his nonprofit organization, Community Renewal, which is the umbrella group over the Haiti project, pay his for-profit company, The Vision Group, $35,000 per month for consulting.

"That was the nail in the coffin for me," said Pastor Wright, executive pastor of the Christ Fellowship Church in McKinney, Texas. He also attended that meeting with Stickler.

Pastor Holland in Sparks agreed.

"It just didn't sound ethical," he said. "It bothered me that the money was going to go that way. Help Build Hope Haiti would have to generate a great deal of money to support that."

Although the amount discussed at the meeting was $35,000 per month, a copy of the 2011 working budget for Help Build Hope Haiti listed $1.8 million to "Vision Development LTD" for fundraising and marketing.

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Bush, director of Red Dot Building Systems, which supports Christian organizations and joined the Haiti project, said after the meeting that Stickler stood to make millions over the five years of the proposed project.

"So a project to help thousands of homeless Haitians is really just a way for Mike to make a substantial amount of money," Bush said in an e-mail to others in the group.

Red Dot was one of the plaintiffs in the lawsuit claiming Stickler was guilty of fraud.

Problems in Haiti

The contractor in Haiti expressed similar concerns.

Jank said Stickler had agreed to cover his travel expenses for their Reno meeting and agreed to his contract, but he failed to pay a Jan. 25 invoice for $8,394. Jank tried to contact Stickler but kept getting excuses, he said.

Jank said he kept working, and paid some local Haitian workers, but still had not been paid as they went from February into March.

"At the end of the day, he owes me $14,193," Jank said. "I had paid my expenses out of pocket, and it made a dent.

"The bottom line is I've been violated here," he said. "As far as I'm concerned, this is outright fraud. We're going to wait for him to set foot in Haiti and we'll bring him to court -- file criminal complaints against him."

Ivey said she could not discuss the claims made by the contractors.

"Our relationships with the numerous employees or independent contractors we have across the country reside within confidential trust per their engagement agreements," she said. "To respond to specifics would be a violation of that trust.

"I can say that any claim made to any appropriate agency has been responded to in a timely matter in due course of business and has been settled satisfactorily."

While some sponsors have expressed concerns about the project, Ivey said the company has "worked to mitigate those concerns to the terms of their contract."

"Every registrant that has requested a refund or other accommodation to his or her registration has been honored per our registration policy," she wrote. "Those requests have been very minimal, less than 20 nationwide, and all have been responded to within 24 hours with satisfactory results."

However, Pastor Wright, executive pastor of the Christ Fellowship Church in McKinney, said he received an email from Stickler in March promising to refund the money his congregation gave by March 25 and money the church gave by March 31, but has yet to see any payment.

"We've refunded anyone from the church who put in their own money for the project," Wright said, adding that was on top of the $46,000 the church itself gave. "We didn't want people to get hurt. We've all been burned."